India

• Hyundai Motor India (1342Z IN) shares start trading on 22 October. The IPO price is 1,960 INR. 
• Although there has been some solid interest on this IPO among many institutional investors, there have been a lower interest among retail investors. 
• There has also been relatively low grey market premium. If the share price reaches in the positive upper single digits, we expect many traders to sell into this short-term rally. 

• Waaree Energies (0656504D IN) awaited IPO is about to open on October 21. The IPO comprises of fresh issue worth INR 36 bn and OFS worth INR 7.2 bn. 
• This insight is an update to the previous note on the company Waaree Energies IPO- Forensic Analysis , on the forensics front. 
• The company still faces some of the forensic setbacks we found in the DRHP. These include capital purchases from related parties, heated receivables, bizarre lease accounting, unpaid dues, etc.

• Over the next couple of weeks, we will focus on highlighting key earnings and what catches our attention in the conference calls
• Top Large Cap Bullish Ideas include HDFC Asset Management Co Ltd (HDFCAMC IN), Bajaj Auto Ltd (BJAUT IN) & Pvr Inox (PVRINOX IN).
• D.B. Corp Ltd (DBCL IN), IndiaMart (INMART IN) & Gopal Snacks (GOPAL IN) are names that we have a bearish view on. 

• SEBI-Mandated structural changes continue to percolate through for Options Markets. Position limits & lot sizes have been increased drastically, tilting regulations away from Retail & towards more Institutional participation.
• IV levels are in the middle of their 12-month ranges. Vol-Regime Model currently in “High & Down” state – grind lower in IVs projected. 
• In spite of a stronger underlying index, upcoming Bank earnings results have supported BankNifty IVs.  

• In the overheated Indian markets where selling spree by promoters is going at record pace.
• We identified certain interesting companies where promoters are buying giving confidence in their business
• We further delve into the thesis and key triggers for these companies

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. Vedanta Resources
2. Longfor Properties
3. Anton Oilfield
4. Adani Green Energy
5. Reliance Industries

and more…

• A special call auction shall be held on October 28, 2024 by BSE & NSE to discover hidden value in Investment Holding Companies.
• BSE and NSE came out with the list of 8-9 Companies that are eligible for this special session. 
• We calculated the upside left in these companies using the Current price with 30% discount: 3 Companies with more than 100% upside.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• Vedanta Resources

• Waaree Energies is looking to raise up to US$514m in its India IPO.
• Waaree Energies is a solar PV module manufacturer in India with an aggregate installed capacity of 12 GW, as of Jun 2024.
• We have looked at the company’s past performance in our earlier note. In this note, we talk about the RHP updates and valuations.

• There are 3 adds and 2 deletes for the iSharesGlobal Clean Energy ETF while there are 2 adds and 2 deletes for the iShares Global Water UCITS ETF.
• With US$5bn benchmarked to the iSharesGlobal Clean Energy and related ETFs, and US$3.5bn benchmarked to the iShares Global Water and related ETFs, there is multiple days of ADV to trade.
• We see a noticeable rise in cumulative excess volume over the last two trading sessions, so there will be positioning in the stocks. 

• Consumption declines by .3% to 356,000 tons in Q1 FY 25
• ATMA says April-Sept 2024 production 37% lower year on year
• ATMA asks Rubber Board to expedite data publishing

• NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
• NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU).
• In this note, we will talk about the not so positive aspects of the deal.

• In this Insight, we highlight industry and company-specific developments based on the annual reports of various companies related to the apparel industry.
• The industry has encountered challenges, primarily due to a slowdown in demand and rising inflation. Most companies are now hoping for a turnaround.
• Companies in Focus Aditya Birla Fashion and Retail Ltd (ABFRL IN), Arvind Fashions (ARVINDFA IN), Vedant Fashions (MANYAVAR IN), Go Fashion India (GOCOLORS IN) and Credo Brands Marketing (CREDO IN).  

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• China Vanke
• Reliance Industries
• West China Cement

• Rubicon Research Limited (1453591D IN) is looking to raise about US$130m in its India IPO.
• It is a pharmaceutical formulations company with an increasing portfolio of specialty products and drug-device combination products targeting regulated markets, particularly, the United States.
• In this note, we talk about the company’s historical performance.

• Vikran Engineering Limited (1635154D IN) is planning to raise about US$119m through its upcoming IPO in India. The lead bookrunners for the deal are Pantomath Limited, Systematix Group.
• Vikran Engineering Limited (VEL) based in Mumbai, operates as an Engineering, Procurement & Construction (EPC) firm, focusing on power, water, and railway infrastructure projects. 
• VEL plans to allocate its funds towards financing the company’s working capital needs and general corporate purposes.

• NTPC Green Energy Ltd (2214556D IN) is looking to raise around US$1.2bn in its upcoming India IPO.
• NTPC Green Energy Limited (NGEL) is a renewable energy public sector enterprise and a wholly owned subsidiary of NTPC Limited, a Maharatna central public sector enterprise (PSU). 
• In this note, we will talk about the positive aspects of the deal.

• Welspun Corp (WLCO IN) expanded from just SAW pipe company to DI Pipe, TMT Bars, Building solutions and PVC Pipes as well. 
• Company is known for reviving bankrupt companies, On the path to revive Sintex and ABG Shipyard.
• high growth from US, Saudi and India driving the growth with capex 

• JK Tyres to pump in INR 1400 crore in two-three years
• Apollo Tyres consolidates R&D in Europe
• Gravita India to acquire waste tire recycling plant in Romania 

• Options Markets expected risk sentiment to deteriorate further – IVs were elevated. But lack of RV follow through caused sharp markdowns, especially for short-dated contracts.  
• Increased Vol-of-vol has triggered multiple switches in Vol Regime Model – currently in “High & Down” vol-state. Multiple state-switches indicative of unfolding structural changes in Vol Markets.
• Smile looking overly compressed in Monthly & Quarterly contracts as OTM Strangles trade close to par with ATMs.

• This strategy exploits relative value in implied volatilities and combines it with a long Nifty 50 vs. short Nikkei 225 directional view over a period of two months.
• The strategy performs well if the Nifty 50 rises and outperforms the Nikkei 225. If both indices decline, neither profit nor loss is incurred.
• Leverage increases both the strategy’s payoff and probability of success.

• Hyundai Motor India (1342Z IN), a subsidiary of Hyundai Motor (005385 KS), aims to raise up to US$3.3 billion at a valuation of US$19 billion.
• We previously discussed the IPO in Hyundai Motor India IPO: The Bull Case, Hyundai Motor India IPO: The Bear Case and Hyundai Motor India IPO: The Investment Case. 
• Our valuation analysis suggests that the IPO price range of Rs1,865-1,960 per share is attractive. Therefore, we would participate in the IPO.

• Shriram Pistons & Rings Ltd (SPRL IN) is into the business of manufacturing auto components including pistons, piston pins and rings, engine valves, electric motors etc. 
• On an overall scheme of things, balance sheet and forensics look good and healthy. 
• However, one must pay attention to goodwill and related assumptions; one of the recent acquisitions has turned loss making.

Lucror Analytics Weekly Wraps provide an overview of all Morning Views comments and reports published by our analyst team in the past week, and also showcase a list of the most-read reports.

In this Insight:

1. China Oil And Gas
2. ICTSI
3. Pt Cikarang Listrindo Tbk
4. Tata Motors Ltd
5. Adani Green Energy

and more…

• Hyundai Motor India (1342Z IN), a subsidiary of Hyundai Motor (005385 KS), aims to raise up to US$3.3 billion at a valuation of US$19 billion. 
• We previously discussed the IPO in Hyundai Motor India IPO: The Bull Case and Hyundai Motor India IPO: The Bear Case. In this note, we examine RHP.
• The RHP shows that the positives (recovering lost market share, top-quartile operating and FCF margin profile) more than offset the negatives (bottom-quartile growth). 

• Mouri Tech Limited (MT IN) is planning to raise about US$179m through its upcoming IPO in India. The bookrunners for the deal are Nuvama Wealth, ICICI Securities, and JM Financial.
• Mouri Tech Limited (MTL) is a global IT solutions provider focused on intelligent enterprise resource planning (iERP) and digital transformation services.
• The company operates across four key areas: iERP, digital transformation, infrastructure services, and program management. MTL leverages advanced technologies.

• Varindera Constructions Ltd (1606813D IN)  is looking to raise about US$143m in its upcoming India IPO. The deal will be run by ICICI, Equirus and IIFL.
• Varindera Constructions Limited (VCL) is an integrated engineering, procurement and construction (EPC) company undertaking construction projects with a focus on building constructions.
• According to the CRISIL Report, it was one of the fastest growing construction companies in terms of revenue from operations, compared to major listed construction companies, over FY19-24.